The Senate Budget and Taxation Committee has approved what is the broadest increase in income tax rates since 1997.

The plan approved in a 10-3 vote on Thursday would boost income tax rates by 0.15% for anyone earning more than $3,000 a year, and 0.25% for anyone earning more than $500,000 a year.

The bill also includes Governor Martin O'Malley's plan to begin collecting the state's sales tax to online purchases.

Montgomery County Democratic Sen. Roger Manno, the committee member who sponsored the bill, said that sales tax would not apply to downloaded music.

The bill also includes the governor's plan to increase the wholesale tax on cigars and other tobacco products so that it is equivalent to the tax imposed on cigarettes.

The 10 Democrats on the committee voted in favor of the tax bill, while the three Republicans voted against it.

In approving this plan, the committee rejected the governor's proposal to cap income tax deductions, including the deduction on mortgage interest payments, for individuals earning more than $100,000 a year, and couples earning more than $150,000.

The committee also approved changes to the governor's proposal to shift half of the cost of teacher pensions to county governments. Under the Senate bill, the $450-million pension shift would be phased in over four years. The governor wanted to phase it in in just one year.

The committee also approved additional spending cuts, compared to the governor's budget.

The bill now goes to the full Senate which is expected to send its version of the budget to the House of Delegates next week.

Senate President Mike Miller praised the budget.

ôIn these times, it is necessary for everybody to share the burden,ö Miller said in a news release from his office.

ôThis budget package is a balanced and reasonable plan that looks out for the needs of our citizens while making the difficult decisions to move our state forward. To create this package, we worked with our teachers, the counties and other affected groups to come to a package that is as fair as it can be. I commend and thank the members of the Budget & Taxation Committee on their difficult work and I hope that the Senate can rally around this reasonable plan.ö

A spokeswoman for Governor O'Malley told WBAL News that the governor "appreciated" the committee's work, but preferred the plan that he proposed.

Earlier today, Miller told reporters that a lot of senators won't like the spending cuts.

He also acknowledged it will be difficult to get the 24 votes in the Senate needed to pass any tax increase.

"We're going to put them out here and let the members see what we can do," Miller added.

The committee also approved a "doomsday" budget with $800-million in spending cuts and no tax hikes.

That plan would go into effect if the full Senate rejects any tax increase.

Frederick County Senator David Brinkley, who is one of three Republicans on the budget committee, says those spending cuts do not go far enough in closing the state's deficit, but he says the proposal is a good idea.

"Everyone call it a doomsday budget. I call it a live within your means budget," Brinkley told WBAL News.

The committee rejected Brinkley's amendment that would have kept state spending at their current levels.

Impact on Tax Brackets

Under this bill with a taxable income between $3,001 and $150,000 would see their income tax rate increase from 4.75% to 4.9%

Those with a taxable income between $150,001 and $300,000 would see their income tax rate increase from 5% to 5.15%.

Those with a taxable income between $300,001 and $500,000 would see their income tax rate increase from 5.25% to 5.4%.

Those with taxable incomes above $500,000 would see their incomes tax rate increase from 5.5% to 5.75%

Roll Call of Senate Budget & Tax Committee on SB 523, the bill to increase the income tax